Exam 1 Flashcards
1
Q
- Body of enforceable rules
- Relationships among individuals
- Between individuals and their govt./society as a whole
- Covers criminal laws
A
What is the Law?
2
Q
- Constitutional Law
- Statutory Law
- Administrative Law
- Case Law
A
What are the 4 Primary Sources of Law?
3
Q
- Sets forth fundamental rights of people living within the U.S. or a given state
- Describes/empowers various branches of govt.
- Sets limitations on that power
A
What is Constitutional Law?
4
Q
- Enacted by the U.S. Congress or legislature of a given state
- Also includes ordinances of a city
- Many statutory laws are in uniform codes adopted in the same form by all states
- Where do you find it? (USCA, Vernon’s)
A
What is Statutory Law?
5
Q
- Promulgated by federal, state, and local regulatory agencies
- Published weekly in Federal and Texas Register
- Where do you find it? (CFR)
A
What is Administrative Law?
6
Q
- Body of judicial decisions that interpret and enforce the different laws and rules on disputes between different parties
- Precedent (“Stare Decisis”)
- Where do you find it? (Fed./State Reporters)
A
What is Case Law?
7
Q
- The authority afforded to a prior judicial decision in deciding subsequent disputes involving the same or similar facts
A
What is Stare Decisis?
8
Q
- Recognizes the precedential value of prior judicial decisions, which provide binding authority in subsequent disputes (stare decisis)
- Found in the U.S., U.K., and most of their former colonies or possessions
- In late 11th century, courts were typically classified as either “courts of law”/”courts of equity”
A
What is Common Law?
9
Q
- Empowered only to wronged parties (usually monetary relief)
A
What are Courts of Law?
10
Q
- Empowered to award any manner of non-monetary relief
A
What is Courts of Equity?
11
Q
- The law that governs relations between people and other people
- Originated in Italy, found mostly in continental Europe, Mexico, and South America
A
What is Civil Law?
12
Q
- Creates, defines, and describes, regulates legal rights and obligations
A
What is Substantive Law?
12
Q
- Establishes the methods of enforcing the rights established by substantive law
A
What is Procedural Law?
13
Q
- The U.S. Supreme Court expressly overturned precedent in this case
- The court concluded that separate educational facilities for whites and blacks were inherently unequal
A
Case in Point 1.4 - Brown v. Board of Education of Topeka
14
Q
- Moral Principles and values applied to social behavior
A
What is Ethics?
15
Q
- A consensus of what constitutes right and wrong behavior and the application of moral principles in a business setting
A
What is Business Ethics?
16
Q
- Ethics based upon an underlying consequence of action taken, without regard to any underlying concept of duty/morality
- Sometimes referred to as “situational ethics” or “the end justifies the means”
A
What is Outcome-Based Ethics?
17
Q
- Ethics based upon an underlying concept of duty regardless of the consequences of action taken
- Generally arise from religious belief and/or philosophical reasoning
A
What is Duty-based Ethics?
18
Q
- A form of outcome-based ethics based on producing the greatest good for the greatest number of people
- Requires a cost-benefit analysis of the negative and positive effects
A
What is Utilitarianism?
19
Q
- The concept that corporations and businesses should act ethically and should be accountable to society for their actions
A
What is Corporate Responsibility?
20
Q
- Corporate directors and officers have the duty to act in shareholder’s best interest
- The law holds directors and officers to a high standard of care in performing these “fiduciary duties”
A
What are Duties to Shareholders?
21
Q
Prompt for Essay
- Employers
- Consumers
- Community
- Society as a whole
A
Corporate has duties to:
22
Q
- Prohibitions of bribery of high-ranking foreign officials
A
What is the Foreign Corrupt Practices Act?
23
Q
- Prohibitions of discrimination by U.S. companies of U.S. citizens in foreign countries
A
What is the Civil Rights Act?
24
Q
- Amir Al-Dabagh was a medical student at Case Western Reserve University who was dismissed from the program after being convicted of driving while intoxicated
- Al-Dabagh argued that his dismissal was a breach of contract, as he had already completed all of the academic requirements for graduation
- The university argued that Al-Dabagh’s DUI conviction demonstrated a lack of professionalism, which was required for graduation
- A federal district court ruled in Al-Dabagh’s favor, ordering the university to award him a degree
- The federal appellate court reversed the lower court’s order to issue a diploma and found nothing to indicate that Case Western had “impermissible motives”
A
Case in Point 3.1 - Al-Dabagh v. Case Western Reserve
25
Q
- Restrictions on women employees in automotive battery manufacturing facility
- 5-4 decision, was ruled in violation of Civil Rights Act
A
What is the Johnson Controls Case?
26
Q
- Rick Scott deposited $2 million into an escrow account managed by a company owned by Salvatore Carpanzano.
- The funds were withdrawn in breach of the escrow agreement.
- Scott filed a lawsuit against Salvatore and others, including Carmela, Salvatore’s daughter.
- The only claim against Carmela was her possession of a Land Rover bought with the funds, but there was no other evidence of her involvement.
- Salvatore was unresponsive to all legal procedures and failed to appear in court.
- The court issued a judgment of over $6 million in favor of Scott.
- On appeal, the judgment against Salvatore was upheld, but the judgment against Carmela was reversed. The reason being a lack of evidence implicating Carmela in her father’s misdeeds.
A
Case in Point 3.3 - Rick Scott
27
Q
- Morgan Stanley Smith Barney, LLC has an internal policy against sales contests.
- Despite this, branches in Massachusetts and Rhode Island held a sales contest.
- Brokers were incentivized with up to $5,000 for selling securities-based loans (SBLs).
- Thirty financial advisers participated for nearly a year.
- The sales contest resulted in a significant increase in loans, with one branch reportedly tripling its loans.
- The contest was halted when Morgan Stanley’s compliance office became aware.
- The state of Massachusetts sued Morgan Stanley, alleging violation of state securities rules.
A
Case in Point 3.5 - Morgan Stanley Smith Barney, LLC
28
Q
- Dr. Rajendra Gandhi and his wife, devout Hindus, hired Sonal Furniture and Custom Draperies, LLC, led by Shyam Garg, expecting high-quality items due to shared cultural values.
- After paying a total of $210,000, the Gandhis found the delivered furniture to be of inferior quality and damaged.
- Dr. Gandhi’s demand for a refund was met with threats from Garg.
- An expert testified that the furniture was more decorative than functional, likening it to movie set props.
- The court awarded the Gandhis a full refund plus $100,000 in damages, finding Garg exploited their cultural beliefs and misrepresented the furniture quality. This decision was upheld on appeal.
A
Case in Point 3.6 - Ghandi v. Sonal Furniture and Custom Draperies, LLC
29
Q
- Volkswagen (VW) executives were accused of manipulating pollution emissions tests for millions of U.S. vehicles.
- VW admitted to using “defeat device” software in diesel models that modified performance during tests to show low emissions.
- Volkswagen pled guilty to criminal charges, resulting in $2.8 billion in fines.
- VW also paid $1.5 billion to the Environmental Protection Agency, totaling a cost of nearly $15 billion, including compensations and vehicle buybacks.
- Six top VW executives faced charges including wire fraud and Clean Air Act violations. The company’s short-term profit focus led to unethical actions and long-term financial consequences.
A
Case in Point 3.13 - Volkswagen
30
Q
- Watson Laboratories, Inc. produces generic drugs provided to Medicaid patients in Mississippi.
- Claims for drug costs are paid to Mississippi Medicaid based on a percentage of the drug’s average wholesale price (AWP).
- For over a decade, Watson set the AWP based on requirements for a generic designation, not actual costs.
- After discovering that actual prices were lower than published AWPs, Mississippi filed a fraud lawsuit against Watson.
- The court ruled Watson caused overpayment for drugs and ordered them to pay over $30 million in penalties, damages, and interest. Watson then appealed.
A
Case in Point 3.2 - Watson Laboratories, Inc
31
Q
- Takata Corporation manufactured airbags using an ammonium nitrate-based propellant without a drying agent.
- These airbags could deploy explosively, especially in certain conditions, causing the metal inflator cartridges to rupture.
-The ruptures sent metal shards into the passenger area, leading to deaths and injuries.
- Nearly 42 million vehicles with these airbags were recalled in the U.S.
- Despite knowing the defects, Takata continued production. The company faced a class-action lawsuit and later sought bankruptcy protection.
A
Case in Point 3.15 - Takata Corporation
32
Q
- Before the Revolutionary War, states wanted confederation with weak national govt. and limited power
- After war ended, states voted to create a new federal govt. that shared power with states
A
What is the Constitutional Powers of Government?
33
Q
- 10th Amendment
- Police powers: order, safety, morals
- Federalism
A
What is the Regulatory Powers of States?
34
Q
- Each state must grant full, faith and credit to laws and acts of other states
A
What is the Full Faith and Credit Clause (Art. IV, Sec 1)?
35
Q
- Citizens of each state are entitled to all privileges and immunities of citizens in other states
A
What is the Privileges and Immunities Clause (Art. IV, Sec 2)?
36
Q
- Art. 1, Sec 8: Empowers congress to regulate commerce with foreign nations, and among the several states and Indian Tribes
A
What is the Commerce Clause?
37
Q
- Commerce between 2+ states
A
What is Interstate Commerce?
38
Q
- Commerce within a single state
A
What is Intrastate Commerce?
39
Q
- Fair Labor Standards Act
- Food and Drug Laws
- Clean Air and Clean Water Acts
- Civil Rights Acts
A
What are Laws Based on the Commerce Clause?
40
Q
- 1st is non-discrimination in public accommodations
- 2nd is non-discrimination in restaurants
A
What is Heart of Atlanta Hotel v. U.S. and Katzenbach v. McClung?
41
Q
- The first 10 amendments to the Constitution compromise in the BOR
- Prohibits unreasonable searches and seizures of persons or property (Amend. 4)
- Guarantees the rights to due process and law and being free from self-incrimination (Amend. 5)
- Guarantees the rights to a speedy public (criminal) trial with assistance of counsel and to cross-examine witnesses (Amend. 6)
- Guarantees the right to trial by jury in both criminal and civil cases involving more than $20
- Court used 14th Amend. to incorporate the BOR to apply to states and local govt.
A
What is the Bill of Rights?
42
Q
- Notice and Hearing
A
What is Procedural Due Process?
43
Q
- Law must further legitimate public purpose to afford equal protection
A
What is Substantive Due Process?
44
Q
- Not specifically mentioned in Constitution but made in 20th Century
- Griswold v. Connecticut in 1965 and Roe v. Wade in 1971
- Also the subject of the statutory laws:
- Family Educational Rights and Privacy Act
- HIPPA
- Qualified by “USA Patriot Act” authorizing NSA
domestic surveillance of phone calls and internet use
A
What is Rights to Privacy?
45
Q
- Established by Supreme Court in Marbury v. Madison (1803)
A
What is Judicial Review?
46
Q
- The power of the courts to take action
- Juris = law + diction = “to speak”
- judicial power = the authority to act
A
What is Personal Jurisdiction?
47
Q
- Non-resident of a state subject to courts in other states based on minimum contacts
A
What are Long-Arm Statutes?
48
Q
- “Where” is the business on the internet located?
- Location of home? Server? Of Customer?
A
What is Jurisdiction on the Internet?
49
Q
- The authority of a court to hear and decide particular dispute before it
- A court’s subject matter jurisdiction is usually defined in the statute/constitution creating the court
A
What is Subject Matter Jurisdiction?
50
Q
- The amount in controversy
- The subject of the lawsuit
- whether the crime alleged is misdemeanor or felony
A
What are the Limits to a Trial Court Subject Matter?
51
Q
- The authority of a court to hear and decide a dispute in the 1st instance
- Generally speaking, trial courts are courts of original jurisdiction, although the Supreme Court of the U.S. has original jurisdiction over a few disputes
A
What is Original Jurisdiction?
52
Q
- The authority of a court to review a prior decision in the same case made by another court
A
What is Appellate Jurisdiction?
53
Q
- Federal district courts have 2 types of subject matter jurisdiction
A
What is Federal Question Jurisdiction and Diversity Jurisdiction?
54
Q
- Arises if a case involves a violation of U.S. Constitution, federal statute or regulation, or a treaty
A
What is Federal Question Jurisdiction?
55
Q
- The amount in controversy exceeds $75K
- The lawsuit is between citizens of different states
- Citizens of a state and citizens of a foreign country
A
What is Diversity Jurisdiction?
56
Q
- When 1 or more federal and state courts have subject matter over same dispute
A
What is Concurrent Jurisdiction?
57
Q
- Variety of methods that seek to resolve disputes without resorting to a costly jury trial
A
What is Alternative Dispute Resolution (ADR)?
58
Q
- Between parties directly, with or without attorneys
A
What is Negotiation?
59
Q
- Non-binding procedure utilizing the services of a neutral 3rd party to assist negotiations
A
What is Mediation?
60
Q
- A binding form of mediation utilizing either 1 person or a panel chosen by the court or agreed to by the parties (or both)
A
What is Arbitration?
